Bond refinancing should save Washington County $600K

WASHINGTON — The Washington County Board of Supervisors made a move Tuesday that is expected to save taxpayers about $600,000.

The board formally agreed to refinance approximately $11 million in general obligation bonds for the Washington County Hospital and Clinics.

“Due to lower interest rates, they can save over $600,000 in taxpayers’ money if we implement these procedures,” Supervisor Jack Seward Jr. said.

There are nine years remaining on the term of the bonds, and there will be no change to the structure or term of those bonds, according to Scott Crist of UMB Bank, which handled the previous bond refinancing.

The county is refinancing bonds that were issued in December 2015 and January 2016. At that time, the county refinanced nearly $15 million in revenue bonds for the hospital.

In 2005, WCHC issued revenue bonds to pay for the construction of the new hospital at an interest rate of 5.5 percent.

Ten years later, WCHC approached the county to seek assistance in refinancing the revenue bonds to lower interest general obligation bonds, a move saved the hospital more than $6 million in interest. Those general obligation bonds were issued at 2.48 percent.

“It’s the same thing we did in 2015 and 2016,” County Auditor Dan Widmer said. “We can have further savings by doing this again.”

Widmer said that the rate for the new bonds has not yet been locked in, but expects the refinancing to be wrapped up by the end of this month.